You must file Form 943 for each calendar year beginning with
the first year that you pay $2,500 or more for farmwork or you employ a
farmworker who meets the $150 test explained in section 4. Do not report these
wages on Form 941 or Form 944.

After you file your first return, each year the IRS will send
you a Form 943 preaddressed with your name, address, and EIN. If you do not
receive the preaddressed form, request a blank form from the IRS. If you use a
blank form, show your name and EIN exactly as they appeared on previous returns.

If you file Form 943 and pay wages to household workers, you
may include the wages and taxes of these workers on Form 943. If you choose not
to report these wages and taxes on Form 943, report the wages of these workers
separately on Schedule H (Form 1040), Household Employment Taxes. You must have
an EIN to file Schedule H (Form 1040). See
section 1
for details. If you report the wages on Form 943, include the taxes when you
figure deposit requirements or make deposits. If you include household employee
wages and taxes on Schedule H (Form 1040), do not include the household employee
taxes when you figure deposit requirements or make Form 943 deposits. See
Publication 926 for more information about household workers.

If household employee wages and taxes are included on Form 943,
you must also include FUTA tax for the employees on Form 940. See
section 10 for more information.

For each month or part of a month that a return is not filed
when required (disregarding any extensions of the filing deadline), there is a
failure-to-file penalty of 5% of the unpaid tax due with that return. The
maximum penalty is 25% of the tax due. Also, for each month or part of a month
that the tax is paid late (disregarding any extensions of the payment deadline),
there is a failure-to-pay penalty of 0.5% per month of the amount of tax. For
individual filers only, the failure-to-pay penalty is reduced from 0.5% per
month to 0.25% per month if an installment agreement is in effect. You must have
filed your return on or before the due date of the return to qualify for the
reduced penalty. The maximum amount of the failure-to-pay penalty is also 25% of
the tax due. If both penalties apply in any month, the failure-to-file penalty
is reduced by the amount of the failure-to-pay penalty. The penalties will not
be charged if you have reasonable cause for failing to file or pay. If you
receive a penalty notice, you can provide an explanation of why you believe
reasonable cause exists.

Note.
In addition to any penalties, interest accrues from the due date of the tax on
any unpaid balance.

If federal income, social security, or Medicare taxes that must
be withheld are not withheld or are not paid, you may be personally liable for
the trust fund recovery penalty. See
Trust fund recovery penalty in section 7.

Use of a reporting agent or other third-party payroll service
provider does not relieve an employer of the responsibility to ensure that tax
returns are filed and all taxes are paid or deposited correctly and on time.